Ethiopian council of ministers approves AI policy

The Council of Ministers has ratified a policy to enhance financial inclusion and national security through artificial intelligence (AI). Approved on the first week of July 2024, the policy spans sectors like water, energy, agriculture, and healthcare. It aims to improve financial literacy, credit scoring, and reduce transaction costs and market frictions, while fostering investment opportunities.

The policy highlights the fragility of businesses due to low financial literacy, making them vulnerable to market changes. It underscores the importance of financial literacy for adopting formal financial products like credit cards and mortgages.

To address this, the government plans to develop AI-based training materials for public computing centers, linking achievements to micro-financing credit lines to encourage widespread participation.